Cryptocurrency News

Bank account flow for South Korean crypto exchanges increased 40% from 2020 surge

As the cryptocurrency market grew First quarter of 2021South Korean banks saw record volumes of deposits and withdrawals at local crypto exchanges.

South Korean commercial banks processed 64.2 trillion won ($57.9 billion) of transactions on real-name bank accounts linked to crypto exchanges in Q1 2021, according to data from the Financial Supervisory Service acquired by Democratic Party member Kim Byung-wook.

Q1 results include data from lenders such as Shinhan Bank, Online Bank K Bank, and Korean NH NongHyup Bank, as well as four major local crypto exchanges including Upbit, Bithumb, CoinOne and Korbit, local trade publication The Mile Business Newspaper. reports Tuesday.

According to the data, crypto flows on verified bank accounts in South Korea increased 40% year-over-year to 37 trillion ($ 33.4 billion) in the first quarter of 2020.

South Korean banks have also reported a large increase in fees paid by crypto exchanges, with K bank receiving approximately 5 billion ($ 4.5 million) in crypto commissions from the Upbit exchange in Q1. This is a nearly tenfold increase from 560 million Won ($504,000) in Q4 2020, notes the report.

NH Nongyup Bank reportedly Received Data shows that in Q1 2021, Bithumb and CoinOne won 1.3 billion ($ 1.2 million) and 330 million ($ 297,000) respectively, while Shinhan Bank received 145 million won ($ 131,000) from Korbit.

Kim said that the “growing speculative fever in crypto markets driven by market liquidity” has led to a significant increase in the number of real-name bank accounts for crypto trading and crypto exchange-derived fees.

“Financial authorities and major commercial banks should roll up their sleeves to protect crypto investors from potential crypto scams and external hacking attacks targeting local coin operators,” the official said.

As previously stated, South Korean financial regulators require local virtual property service providers Receive verifiable accounts in their real names from banks.